Business Trust

A trust that usually generates cash flows from one business or operating company, unlike an investment fund, which generates income from a diversified pool or portfolio. The trust holds debt and equity interests of an operating business. Businesses that exhibit these characteristics may opt for a trust structure over a corporate structure to take advantage of tax efficiency.

Buy Side Analyst

Analyst working for mutual fund or other institutional investor. We don’t usually get to see their reports.

Floating Rate Security

A security whose interest rate or dividend changes with specified market indicators. A floating rate is one that is based on an administered rate, such as a prime rate.

Bull Trap

A false signal which indicates that the price of a stock or index has reversed to an upward trend, but ultimately proves to be false.

Fill or Kill (FOK) Order

A tradable limit order marked “FOK” will trade as much stock as possible upon entry, but will immediately cancel or kill any unfilled volume.

Financial Leverage Ratio

The leverage ratio, which is total assets divided by shareholders’ equity, is an all-purpose debt gauge. A company with no debt would have a ratio of one, and the higher the ratio, the more debt.